In a notable development, President Trump issued an Executive Order on Monday, February 10, 2025, “pausing” enforcement of the Foreign Corrupt Practices Act (FCPA) for the next 180 days until new enforcement guidelines and policies are established.
The President’s Executive Order explains that “American national security depends in substantial part on the United States and its companies gaining strategic business advantages whether in critical minerals, deep-water ports, or other key infrastructure or assets” and asserts that “overexpansive and unpredictable FCPA enforcement against American citizens and businesses for routine business practices in other nations not only wastes limited prosecutorial resources that could be dedicated to preserving American freedoms, but actively harms American economic competitiveness and, therefore, national security.” Id. Accordingly, the President has directed the Attorney General to
“cease initiation” of new FCPA investigations and enforcement actions, to “review in detail” existing investigations and enforcement actions to ensure they are consistent with his administration’s goals, and to “issue updated guidelines or policies” going forward. Id.
This Executive Order builds on a memo issued just last week on Wednesday, February 5, 2025, by Attorney General Pam Bondi – titled the Total Elimination of Cartels and Transnational Criminal Organizations memorandum – in which she set out new FCPA enforcement priorities focused on the prosecution of cartels and transnational organizations as opposed to other, more traditional areas. Specifically, the Department of Justice’s FCPA unit has been instructed to “prioritize investigations related to foreign bribery that facilitates the criminal operations” of cartels and transnational criminal organizations, and “shift focus away from investigations and cases that do not involve such a connection.” Id.
While the dust has not yet settled, and may not for a while, what is clear is that old norms are being upset, new priorities are in being put in place, and revised guidance from the new administration is on the way. We know this topic is important for companies doing business outside of the United States, and we will provide updates, as they become available, throughout the coming 180 days and beyond so that you can incorporate that guidance into your practices and policies.
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